I have traded for thousands and thousands of hours in the live market, and here is my 1 biggest trading mistake from the early days. Here’s what I learned from it and why you should avoid making the same mistake.
I started trading on smaller timeframes because smaller timeframe give more trading opportunities, and more trading opportunities equals more live market experience. And that equals getting better at trading faster.
But here’s the problem I faced. When I was in the learning stage and only had a few hundred hours of trading experience, I used to have multiple green days in a row. This green days used to make the profit graph go in the upward direction. But then I used to give back all that good profit in just 1 day. Sometimes it was not even in one day, but within matter of minutes because of the smaller timeframes.
And the reason why this used to happen is that I didn’t had enough experience to identify when not to trade. After all, I was a beginner with only few hundred hours of experience.
But here’s the rule I came up with to stop myself losing everything in the bad market. If you have been following Trading Rush for a while now, you probably saw me recommend it multiple times on the channel, Patreon, and on Discord.
And the simple rule is: create your own PDT rule but for each day. What I followed was, if I lost 2 trades in a row or 2% in a day, I would stop trading for the rest of the day. Most traders blow up accounts pretty quickly with one of the reasons being revenge trading. But with this rule, your mind will have the entire day to refresh and think logically the next day. Very Low probability of you revenge trading. This simple rule helped me tremendously as beginner. If I had to make a list of things that had a big impact on the trading performance, this rule would be one of them.
Now even some brokers are coming with a similar rule baked into their platform. If your broker has one, it is a good idea to use it. And remember, most beginner trader focus too much on how to trade and high win rate. But focusing on how and when not to trade is also every important.
That’s all!
